“Saudi Arabia” deposits one billion dollars in the Central Bank of Yemen and seven urgent steps to stabilize the riyal


An economic expert called on the recognized Yemeni government to take eight urgent steps to stabilize the riyal against foreign currencies, including Saudi Arabia’s request to deposit one billion dollars as a deposit with the central bank in Aden.

Al-Masbahi stressed, in a press statement, followed by “The Yemeni Scene”, that implementing the decision to stabilize the exchange rate and impose a fixed exchange rate, similar to what is done in Sana’a, will require the government to take a number of measures, including but not limited to; Demanding Saudi Arabia to deposit one billion dollars as a deposit with the Central Bank, encouraging oil companies to resume work and increase production and export, start operating the Balhaf gas facility and resume the export of natural gas, and quickly restart the Aden refineries and play their role in the refining process after providing them with local or imported crude oil, and canceling The decision to liberalize the import of oil derivatives, limit the import to the Aden Refineries Company, and marketing to the Yemeni Oil Company, and quickly operate the President’s electrical station in its first and second stages, cancel leased energy contracts, supply the value of all international grants and aid and organizations to the Central Bank and exchange through it in the local currency, and obligate all state institutions In all governorates, it must supply its revenues to the Central Bank.

He pointed out that the achievement of all previous measures will lead to the stability of exchange rates, but the central bank must, before that, follow the policy of control and supervision of commercial banks and exchange shops through the monetary policy tools owned by the bank to impose a fixed exchange rate.

He explained that the advantages that the imposition of a fixed exchange rate would achieve are represented in stabilizing the exchange rate, promoting trade, facilitating the movement of capital by private companies and attracting investments, preventing speculation in foreign exchange markets, preventing an inflationary policy and stabilizing prices.

The Yemeni riyal exchange rates have tumbled during the past few days against foreign currencies, reaching more than 1500 riyals per dollar.

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